Glossary

Leverage

Controlling a position larger than the money you put down. It magnifies gains and losses by the same factor.

Leverage effect A 5% price fall costs 5%, 25%, 50% and 150% of the deposit at leverage 1:1, 5:1, 10:1 and 30:1. −5% PRICE MOVE · RESULT ON YOUR MONEY −100% −5% 1:1 −25% 5:1 −50% 10:1 −150% 30:1

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